For many years auto transport companies have been purchasing leads that go out to 10 companies at the price of the lead ranges between $.90 and can go up to $1.35 per lead. Once the lead is generated the customer is, unknowingly, going to receive 10 different companies calling them to give them a quote. If a transporter company doesn’t reach the customer they will call again and again until the customer answers. At the end of the day they customer can have upwards of 20-25 phone calls in a single day. As the customer, they are frightened, upset, and turned off by the amount of people calling to quote them. The website the customer went to never said anything about getting 10 companies quoting them, so they are just bombarded and have no choice but to be angry.
We at Auto Transport Quote Services understand what the customer is feeling and that is why we have created new lead plans that will go to less companies which actually creates a better environment for the brokers buying he leads and customers wanting a few quotes. 10 is not the magic number. In our research customers are usually interested in receiving 3-5 different quotes. That is the magic number when a customer feels more at ease about the amount of quotes they will be receiving. They are not bombarded by companies, but instead are looking forward to receiving 3-5 quotes. This makes for a better conversation between the customer and each broker company looking to earn the business.
In other research performed by Auto Transport Quote Services, pricing of these lead plans and conversions of these plans are better for the broker companies. A lead that goes to 5-6 companies are $2.50 a lead and are averaging conversion rates of 7-8%. A lead that goes to 2-3 companies are priced at $4.00 a lead and are averaging conversion rates of 12-15%.
Think about this:
Example 1: A company buys 1000 regular leads that goes to 10 companies. The normal conversion rate is about 3.5-4%. Lets say they book at 4%. That means they made 40 booked orders. At the $150 deposit the company made $6,000 and spent $1350. The profit for the company is $4,650.
Example 2: A company purchases 1000 premium leads that goes to 5-6 companies. Lets say the company is on the low end of the the conversion rate at 7%. That means they book 70 orders now. With the average deposit of $150 the company just made $10,500 and only spent $2,500 on leads. That is a gross profit of $8,000.
Out of example 1 and example 2 which company is better off? I think it is pretty obvious that the company buying the premium leads is better off. It is not rocket science it is just simple math. A company can perform the same amount of work with the same amount of leads and generate an additional $2000 a month with just purchasing 1000 leads. That is a pretty big difference in profit revenue while doing the same amount of work.
When you are looking to buy leads for a lead provider make sure you get leads that go to less companies. It makes for a better work environment, less stress and more profit. It is simple a no-brainer.